The event coincided with the launch of the global TMT Predictions 2016 report, an annual publication highlighting predicted trends and opportunities in the Technology, Media, and Telecommunications industries. The report contains 17 highly researched features on what Deloitte forecasts for the upcoming year, including the forthcoming boom of virtual reality, the limitations of graphene, and the little known market of used smartphones. Two of the predictions are outlined in greater detail below.

The dawn of the Gigabit Internet age: every bit counts

The number of Gigabit per second (Gbit/s) Internet connections is expected to surge to ten million by year-end, a tenfold increase of which about 70 percent will likely be residential connections. Rising demand will likely be fueled by increasing availability and falling prices. It is anticipated that about 600 million subscribers may be on networks that offer a Gigabit tariff as of 2020, representing the majority of connected homes in the world.

According to a 2013 case study by FTTH Council Europe, Luxembourg is on the forefront of this need for speed, with a goal of giving 100 percent of homes access to fiber optic internet by 2020. Currently, over one third of homes have access to the ultra-high speeds, with expected growth to over fifty percent by the end of 2016.

“Luxembourg has the advantage of being a small and innovative country; government support for accelerated connections combined with a low amount of territory to cover allows high-speed internet access to the entire country without significant time and investment,” states Georges Kioes, Partner and TMT Leader at Deloitte Luxembourg.

Virtual reality gear forecast to hit record billion-dollar mark

Deloitte also predicts that virtual reality (VR) will have its first billion dollar year in 2016, with about US$700 million in hardware sales, and the remainder from content. The report estimates sales of about 2.5 million VR headsets and 10 million games. The technology is not only for gaming, and Luxembourg is involved in a project for Horizon 2020 called TARGET (Training Augmented Reality Generalised Environmental Toolkit) which uses VR to train security agents, counterterrorism units, border guards, and first responders.

Georges Kioes continues, “Virtual reality is unlikely to reach its full potential this year, and revenues are expected to continue growing in the mid-term as emerging technologies surface. With uses in entertainment, business, healthcare and emergency services, the complete possibilities of VR have likely not yet been discovered. We expect 2016 to be a year of experimentation, yet like all emerging technologies, patience is required.”

Now in its 15th year, Deloitte Global’s annual TMT Predictions provides a 12-18 month outlook on key trends in the technology, media, and telecommunications industry sectors worldwide. Full details about the global TMT Predictions are available here: www2.deloitte.com/lu/tmtpredictions2016